Your Financial Future:
Hispanics And Social Security
Why is Social Security Important to Hispanics?
- Hispanics earn less than other groups of Americans during their working years.
- In 2008, the median earnings of working-age Hispanics who worked full-time year-round were about $30,000, compared to $40,000 for all working-age people.
- Social Security replaces a higher percentage of pre-retirement earnings for low-income workers than for high-income workers. Low-income working Hispanics can expect to receive a greater proportion of their pre-retirement income than can higher-earners.
- Hispanics are less likely than other workers to benefit from an employer sponsored retirement plan. According to the 2006 National Compensation Survey by the Bureau of Labor Statistics, only 25.6 percent of Hispanics were covered by employer-sponsored retirement plans, while 42.5 percent of whites and 40 percent of African-Americans were covered.
- Over 50 percent of all Hispanics have less than $10,000 saved for retirement, making Social Security an increasingly important part of retirement security.
Why is Social Security Important to Hispanic Women?
- Hispanic women have a longer life expectancy when compared to that of all women; Hispanic women who are age 65 in 2010 can expect to live on average to be 89, compared to age 85 for all women.
- In 2008, Hispanic women who qualified for Social Security received an average annual retired work benefit of $9,536.
- 38 percent of older married Hispanic couples and 62 percent of older unmarried individuals relied on Social Security benefits for 90 percent or more of their total income in 2008.
- Despite the current benefits from Social Security currently 22 percent of elderly Latinas live in poverty.
Sources: “Social Security Is Important to Hispanics,” Social Security Administration. June 2010.
2007 Minority Retirement Confidence Survey, the Employee Retirement Benefit Research Institute.
Annual Social and Economic Supplement, Current Population Survey. U.S. Census Bureau. 2008.